1. Innovation Mindset 1

2. Questions adressed Why a Mindset matters? What does it mean to have an Innovation Mindset? What abilities are needed to really innovate? 2

3. Learning objectives & outcomes Realizing and understanding what mindset is Developing innovation mindset Using innovation mindset in business 3

4. Content Part 1: Understanding the Power of Mindset Part 2: Defining Innovation Mindset Part 3: Innovation Mindset and business 4

5. Part 1: Understanding the Power of Mindset Part 2: Defining Innovation Mindset Part 3: Innovation Mindset and business 5

6. „Innovation and change is not a technical problem. It’s a mindset” (Vijay Govindarayan 2009) 6

7. Defining a Mindset 7 Mindsets are beliefs – beliefs about ourselves and our most basic qualities, like intelligence, personality or talent (Carol Dweck) Mindsets are attitudes which manage our actions and interactions with the world Minset is a way of thinking about the world and about our impact on that world through: What you believe you can do What you believe you can’t do

8. Defining a Mindset Do you believe that your traits are just givens? Do you believe that your intelligence, talent, personallity alone determines your success? And there is nothing you can do that you are not like…? Do you believe that your traits change throuthout your lifetime? Do you believe that most basic abilities can be developed through dedication and hard work? And that you can DO IT regardless of being…? 8 Think about your intelligence, your talents, your personality…

9. Mindset in a nutshell 9

10. Mindset for Success When you look at the world with the fixed mindset… – it’s not enough just to succeed; – it’s not enough just to look smart and talented; but – you have to be pretty much flawless; and you have to be flawless right away... so…if you have it you have it, and if you don’t you don’t... If failure means lack of your competence or potential - than you are a failure – where do you go from there? When you look at the world with the growth mindset… – you are encouredged to learn from failures – you are never smart and talented enough to learn something new but – you can always adapt by making changes so… you can always have it later if not this time If failure means you lack competence or potential – you can always learn and start over? 10

11. Is it possible to think like an innovator with a fixed mindset? 11 If yes, why? If no, why?

12. Is it possible to think like an innovator with a fixed mindset? Watch some answers… https://www.youtube.com/watch?v=wny1PKr_nO g 12

13. Short excercise Compare folloving bahaviuors against the idea of fixed and growth mind – Keep an external Focus – Learn from your mistakes – Embrace your inner Edison – Resist the pull of the core How you see your mind prepared for innovations? 13

14. Part 1 summary: Mindset for innovation Mindset is a way of thinking The way you think drives your behaviors and determine how you act! What limits us is the what we think we are able to do (Carol Dweck), because: – everyone has the fundamental ability to be creative and innovative but – not everyone has nurtured these capabilities to the same degree Innovation starts inside your head! 14

15. Part 2: Defining Innovation Mindset Part 1: Understanding the Power of Mindset Part 2: Defining Innovation Mindset Part 3: Innovation Mindset and business 15

16. What is Innovation Mindset? Innovation Mindset: specific state of mind which orientates human towards innovation activities Since mindsets are beliefs, people with innovation mindsets share belief that: – innovation is needed and beneficial – they can make a difference through innovation – they have or can have abilities to innovate Innovators share growth mindset 16

17. Drivers of Innovation Mindsets Individuals with innovation mindsets: – are driven by willingness to create, – want to make a difference, – share resillience in achieving goals, – love change, – are open for failure and learning The creative and innovative Mindset is enhanced through four behaviors: – Changing one’s perspective – Taking risks – Finding one’s passion – Challenging assumptions and embracing ambiguity 17

18. Reinforcing domains of Innovation Mindset “I think of the Innovator’s Mindset as being comprised of following six reinforcing domains” - Bradley (Woody) Bendle – Alertness – Curiousness – Willingness – Joy – Desire – Drive 18

19. Six reinforcing domains of innovation mindset Case study: write how you understand the following: Alertness………………. Curiousness…………… Willingness……………. Joy……………………… Desire………………….. Drive……………………. 19

20. Summary of case studies „So while innovation can be fed by external stimuli, energized by data, prodded by recognizing trends in the outside world, true innovation - the ability to create new ideas that add value - needs to be developed primarily as an internal thinking process and mindset that can be learned by all.” Bill Hortz 20

21. Docherty's Innovation Mindset Model Is it easy to think like an innovator and face innovation challenge? 21

22. Docherty's Innovation Mindset Model At the beginning of any strategic innovation initiative, everyone's excited and optimistic. They believe they've got a great idea and they're going to rule the world (Dreaming). 22 Depth of knowledge (time) Clarity and conviction Dreaming

23. Docherty's Innovation Mindset Model Then $%^& happens as it always does and we face failure (Doubting). It's never as easy as we thought it would be. Failure is a natural and useful element of innovation... it's how we learn and adapt our solutions. Or determine it's time to try another challenge. Depth of knowledge (time) Clarity and conviction 23 Dreaming Doubting

24. Docherty's Innovation Mindset Model As we develop innovative concepts into real- world practical solutions, we're learning more, the problem isn't as simple and we begin to truly understand the complexity of the challenge. It's this 3rd stage (Quitting or Persevering) that truly separates innovators from dreamers. Depth of knowledge (time) Clarity and conviction 24 Dreaming Doubting Quitting or Persevering

25. Docherty's Innovation Mindset Model Those that persevere and don't quit often experience a transformation al experience of having worked through the challenges. Depth of knowledge (time) Clarity and conviction 25 Dreaming Doubting Quitting or Persevering Transforming

26. Docherty's Innovation Mindset Model Having worked through the challenges and acquiring a new confidence built upon deep knowledge and experience result in championing. Depth of knowledge (time) Clarity and conviction 26 Dreaming Doubting Quitting or Persevering Transforming Championing

27. Innovation Mindset and success Having positive, innovator’s mindset actually CREATES success and luck Luck (or success) comes to those who embrace and embody four essential principles (Richard Wiseman): – Creating luck by noticing and acting on opportunities – Expecting that one can create luck through perseverance – Making decisions which are informed by the well honed intuition – Resisting the negative by finding and even creating the bright side of every situation 27

28. How to broaden a mindset for innovation? Short excercise: work on your innovation mindset – (from the University of Virginia's Darden School of Business Design Thinking in Business Innovation program) As human’s brain is designed to develop new circuitry, rewire itself based on new thoughts and behaviors, here is how to get started: 1. Find quiet time every day for reflecting on what you are thinking and why? 2. When you find yourself in a fixed mindset, ask if it is coming from discomfort with change or fear of making a mistake. 3. Make it a priority to learn or try something new every day. 4. Ask questions more often than you give answers. 5. Do something that stretches you beyond your current capabilities at least one time per week. 28

29. Part 2 summary: Defining Innovation Mindset „Genius is 1 percent inspiration, 99 percent perspiration.” (Thomas Edison) The real innovation challenge lies beyond the idea, in a long, hard journey from idea to impact Innovators are consumer centric – they want to deliver them value through creating solutions for things consumers need providing useful things consumers didn’t even know they wanted Innovators go beyond the idea to entrepreneurial thinking 29

30. Part 3: Innovation Mindset and business Part 1: Understanding the Power of Mindset Part 2: Defining Innovation Mindset Part 3: Innovation Mindset and business 30

31. „Entrepreneurship is first and foremost a mindset.” (European Comission 2003) 31

32. What is necessary to become an innovator? To become an innovator it is necessary to: – acknowledge that the world is changing – be ready for change – be able to lead change and – start dealing with change and using it a source of power – take conscious responsibilities for actions taken and learn lessons 32

33. Entrepreneurial Orientation 33

34. Three Dimensions of Entrepreneurial Orientation – Innovativeness is the predisposition to engage in creativity and experimentation through the introduction of new products/services as well as technological leadership via R&D in new processes. – Pro-activeness is an opportunity-seeking, forward-looking perspective characterized by the introduction of new products and services ahead of the competition and acting in anticipation of future demand. – Risk taking involves taking bold actions by venturing into the unknown, borrowing heavily, and/or committing significant resources to ventures in uncertain environments. 34

35. Three Dimensions of Entrepreneurial Orientation: – Innovativeness – Pro-activeness – Risk taking 35

36. Dimention #1: Innovativeness openess for new ideas willingness to engage resources in development of new ideas (time, money, facilities…) active explotraion of new posibilities, opportunities futuring and creating experimentation patience (ideas need time to mature: 2,3,10 years…) allowing collesions of smaller hunches (for the big ideas to be created) 36

37. Critical Mindset vs Creative Mindset Part 1 of 4 Critical Mindset Certain Closed to new information Demanding respect Isolating and analysing ideas Creative Mindset Flexible Open to learning Respecting others Connecting ideas 37

38. Critical Mindset vs Creative Mindset Part 2 of 4 Critical Mindset Avoiding change Embracing correctness Going through the motion Using tries and true methods Creative Mindset Adapting to the unexpected Embraicing ambiguity Having fun Discovering new ways 38

39. Critical Mindset vs Creative Mindset Part 3 of 4 Critical Mindset Assesing and judging ideas Seeing unrelated events Seeing gaps and inconsistences as failures Spotting wrong answers Creative Mindset Developing unique and useful ideas Seeing connection Seeing gaps and inconsistences and clues Spotting wrong questions 39

40. Critical Mindset vs Creative Mindset Part 4 of 4 Critical Mindset Criticising the offbeat Reacting Seeing failure as failure Describing what is Creative Mindset Embracing the different Anticipating Seeing failure as learning Embracing possiblity 40

41. How to use innovativeness (#1) to create something new Watch the video https://www.youtube.com/watch?v=FSxSinVVRL w 41

42. Three Dimensions of Entrepreneurial Orientation: – Innovativeness – Pro-activeness – Risk taking 42

43. Dimention #2: Pro-activeness Courage and ability to act and make things done! 43 Source: http://www.cflf.org/sites/cflf/files/persistence-and-proactive.jpg

44. Pro-activeness and entrepreneurship How to spot an entrepreneur (Mazzarol 2011) – An agent of change: person who brings new ideas or products to market with the ability to create wealth and employment – Motivation: person who has individual motivation and the capacity to identify an opportunity and pursue it to economic success regardless of the resources that are under control – Converting opportunity: person who converts opportunities into marketable ideas, often assuming risk, implementing the idea and realizing any rewards – Creating new ventures: a person who starts a company (entrepreneur) or works in an organization on a new project (entrepreneur) 44

45. How to be pro-active and how to make a difference Watch the video https://www.youtube.com/watch?v=i35BpZIXBJU 45

46. Three Dimensions of Entrepreneurial Orientation: – Innovativeness – Pro-activeness – Risk taking 46

47. Dimention #3: Risk-taking taking actions into the unknown committing resources to actions in uncertain environments Is innovation possible without risk? 47

48. Failing and rising: learning from failures 34-35% of people across all types of economies (factor-driven, efficiency-driven, innovation- driven) holds a fear of failure as a potential barrier to new ventures creation (Bosma & Levie 2010) „Fail often and early” 48

49. Effectuation theory (part 1 of 3) Effectuation theory: an individual seeking to launch a new venture will need to apply – an causation process rather than – an effectuation process 49

50. Effectuation theory (part 2 of 3) An causation process – a clear sense of variables that need to be controlled in order to achieve a given outcome or end result – cause-effect logic in which investment of time and resources in a project will lead to relatively predictable outcomes – is well suited to the exploitation of known markets and established knowledge An effectuation process – the Focus is on control of things that might assist in articulating through the process into an uncertain future – assumes that the environment is dynamic, non-linear, ecological in nature – suitable where variables and even the end state are unknown or unpredictable thus can be useful in the creation of new markets and products in which strategic alliances and collaborative strategies are important for success 50 Two approaches to processes

51. Effectuation theory (part 3 of 3) Four principles of effectuation theory (Sarasvathy 2001): – Affordable loss, rather than expected returns – Strategic alliances, rather than competitive analyses – Exploitation of contingencies, rather than pre-existing knowledge – Control of an unpredictable future, rather than prediction of an uncertain one 51

52. Effectuation theory example: A chef cooking a meal. causation process A client chooses a menu in advance Then the chef prepares this menu by looking for the right ingredients and following the recipes to make the dishes effectuation proces A client doesn’t ask for a specific menu, but he asks the chef to make something with the ingredients available. The chef chooses one of the many different meals he is able to make with the available ingredients. 52 Source: S. Sarasvathy; et al. (2001). "EFFECTUAL ENTREPRENEURIAL EXPERTISE: EXISTENCE AND BOUNDS".

53. Effectuation theory – an example Watch the video http://library.fora.tv/2011/09/16/Collective_Entre preneurship/Venture_Fest_Innovation_Through_C ompetition 53

54. Part 3 summary: Innovation Mindset and business It is crucial to have an innovarion midnset for succesful business operations Innovativeness, Pro-activeness and Risk taking are key features of innovation midnset in business An individual seeking to launch a new venture will need to apply an causation process rather than an effectuation process 54

55. A kind of summary at the end Traits of key billionaires – Innovation Mindset – Have a big passion / purpose in life – Do a lot of experimentation – Practice long term thinking – Are optimistic – Accept risk & mitigation – Practice Customer Centricity Thinking 55

56. And some more useful links Creating innovation minset of an organisation – http://blogg.nhh.no/tjenesteinnovasjon/?p=1239 Changing employee mindset – http://www.slideshare.net/anis_bedda/klaschka-20141212- intrapreneurship-conference Designing innovation culture – http://www.bic.sg/innovation-culture-canvas- gallery/kaawnggpggv678gwlyr5iue5zrlr2y What does it mean to be proactive? – http://www.entrepreneur.com/article/243054 56